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Determine the depletion charges using the percentage depletion method for the first year only for a coal mine. The applicable rate for the percentage depletion

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Determine the depletion charges using the percentage depletion method for the first year only for a coal mine. The applicable rate for the percentage depletion method is 15%. Cost to acquire mine rights is $70,000 Estimated mine size = 14,000 Tons Selling price = $60 per Ton Amount sold in year 1 = 2,500 Tons Operating cost in year 1 = $120,000

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